{"id":94,"date":"2024-09-11T22:18:18","date_gmt":"2024-09-11T18:18:18","guid":{"rendered":"https:\/\/utilitybusinessmena.com\/?p=94"},"modified":"2024-09-11T22:18:18","modified_gmt":"2024-09-11T18:18:18","slug":"egypt-green-hydrogen-project-on-track","status":"publish","type":"post","link":"https:\/\/cheeltech.com\/utilitybusinessmena\/news\/egypt-green-hydrogen-project-on-track","title":{"rendered":"ACWA Power to complete first phase of $4BN green hydrogen project in Egypt by 2028"},"content":{"rendered":"\n

ACWA Power, one of the world\u2019s leading developers in renewable energy<\/a>, is set to complete the first phase of its landmark green hydrogen project in the Suez Canal Economic Zone (SCZone) by late 2028.<\/p>\n\n\n\n

\u00a0According to Hassan Amin, CEO of ACWA Power<\/a> Egypt, the project will play a key role in the country’s energy transition and global efforts toward reducing carbon emissions.<\/p>\n\n\n\n

The ambitious project, initiated under a 2023 agreement, involves an investment of over $4 billion.<\/p>\n\n\n\n

Once fully operational, the plant will produce 600,000 tonnes of green ammonia annually, with plans to expand capacity to 2 million tons in future phases.<\/p>\n\n\n\n

The ammonia produced will serve as a vital component in the global green hydrogen supply chain, helping to meet growing demand for sustainable energy solutions.<\/p>\n\n\n\n

Renewable energy to power the plant<\/strong><\/p>\n\n\n\n

The green hydrogen plant will rely on renewable energy sources from the East Nile feeding stations in Minya, Upper Egypt, ensuring the project is in line with Egypt\u2019s sustainability goals.<\/p>\n\n\n\n

Amin noted that the renewable power supply will be a key aspect of the plant\u2019s operations, allowing it to avoid the significant carbon emissions typically associated with traditional hydrogen production methods.<\/p>\n\n\n\n

Green hydrogen, unlike its fossil fuel-derived counterpart, is produced by splitting water into hydrogen and oxygen using electricity generated from renewable sources, such as wind or solar power.<\/p>\n\n\n\n

This method drastically reduces carbon emissions and has the potential to transform energy sectors worldwide.<\/p>\n\n\n\n

Expanding global partnerships<\/strong><\/p>\n\n\n\n

In addition to its operations in Egypt, ACWA Power has a global presence in the green hydrogen sector. The company\u2019s CEO, Marco Arcelli, pointed out ACWA\u2019s role as a first mover in green hydrogen, noting, “Egypt is well-positioned to become one of the world\u2019s top producers of green hydrogen, and we are proud to be part of the country\u2019s energy transition.”<\/p>\n\n\n\n

ACWA Power has proactively entered into key international partnerships to bolster its green hydrogen initiatives.<\/p>\n\n\n\n

In July 2024, the company signed an agreement with Japan\u2019s Itochu to co-develop and off-take green ammonia from the Egyptian plant.<\/p>\n\n\n\n

The agreement follows a framework signed in 2023 between ACWA Power, the Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone, the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA) to build the first phase of the hydrogen facility.<\/p>\n\n\n\n

Scaling up global projects<\/strong><\/p>\n\n\n\n

Beyond Egypt, ACWA Power is developing several large-scale hydrogen projects around the globe. The company is a key player in the Neom Green Hydrogen Project in Saudi Arabia, the world\u2019s largest hydrogen plant designed for export.<\/p>\n\n\n\n

Partnering with Air Products and Neom, ACWA Power secured $8.5 billion in financing and a 30-year offtake agreement for the project. Also, ACWA is advancing its efforts in Uzbekistan, where construction on a new hydrogen plant began in November 2023.<\/p>\n\n\n\n

In Uzbekistan, the first phase of the project includes a 3,000-tonne green ammonia pilot, which will eventually be expanded with 2.4 gigawatts of wind energy to produce 500,000 tonnes of green ammonia annually.<\/p>\n\n\n\n

These initiatives reflect ACWA Power\u2019s commitment to accelerating the global shift to cleaner energy solutions.<\/p>\n\n\n\n

Egypt\u2019s strategic push for green hydrogen<\/strong><\/p>\n\n\n\n

Egypt, with its abundant solar and wind resources, is uniquely positioned to become a global leader in green hydrogen production.<\/p>\n\n\n\n

The country\u2019s 2035 Energy Strategy places a significant focus on developing its hydrogen industry, with green hydrogen and its derivatives\u2014such as ammonia and methanol\u2014at the core. These products are expected to be in high demand as the global shipping industry transitions to more sustainable fuels.<\/p>\n\n\n\n

The Egyptian government has set ambitious renewable energy targets. At the UN Climate Conference COP27, Egypt announced its goal of sourcing 42% of its energy from renewables by 2030, a substantial acceleration from the previous target of 2035. Currently, around 20% of Egypt’s energy mix comes from renewable sources.<\/p>\n\n\n\n

In line with this national strategy, ACWA Power is playing a key role in supporting Egypt’s green energy ambitions. Including the latest hydrogen project, the company now operates five renewable energy projects in Egypt, with a total power generation capacity of 1.4 gigawatts.<\/p>\n\n\n\n

A growing global presence<\/strong><\/p>\n\n\n\n

Backed by Saudi Arabia\u2019s Public Investment Fund, ACWA Power has operations across 12 countries, including the Middle East, Africa, Central Asia, and Southeast Asia.<\/p>\n\n\n\n

The company\u2019s portfolio includes 77 projects in various stages of development or construction, with a total investment value of $82.8 billion. In total, the projects have the capacity to generate nearly 54 gigawatts of power and 7.6 million cubic meters of desalinated water per day.<\/p>\n\n\n\n

As the world increasingly shifts toward cleaner energy, ACWA Power\u2019s green hydrogen projects in Egypt and around the world are set to become critical components of the global energy transition.<\/p>\n","protected":false},"excerpt":{"rendered":"

Green hydrogen project will play a key role in the country’s energy transition and global efforts toward reducing carbon emissions<\/p>\n","protected":false},"author":2,"featured_media":95,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58,74,40,41],"tags":[50,132,133,38,134,135,42],"class_list":{"0":"post-94","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-features","8":"category-hydrogen","9":"category-news","10":"category-renewable-energy","11":"tag-acwa-power","12":"tag-carbon-emissions","13":"tag-green-ammonia","14":"tag-green-hydrogen","15":"tag-marco-arcelli","16":"tag-neom-green-hydrogen-project","17":"tag-renewable-energy"},"_links":{"self":[{"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/posts\/94","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/comments?post=94"}],"version-history":[{"count":0,"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/posts\/94\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/media\/95"}],"wp:attachment":[{"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/media?parent=94"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/categories?post=94"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cheeltech.com\/utilitybusinessmena\/wp-json\/wp\/v2\/tags?post=94"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}